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1 Gevo, Inc. (GEVO:NASDAQ) Pavel Molchanov, (713) , Cory J. Garcia, (713) , Stacey Hudson, Res. Assoc., (713) , Alternative Energy: Alternative Fuels and Chemicals Another Blue Chip Partnership: Bioplastics Alliance With Coca-Cola Our industry brief from June 10, Bio-Based Plastics: In Coke-Pepsi War's New Front, Gen2 Biofuels Set to Benefit, introduced the bioplastics opportunity as it relates to Gen2 biofuel developers. Today came the latest milestone, as Gevo announced a partnership with Coca- Cola to create renewable para-xylene from isobutanol. The goal is to accelerate the development of Coke s second-generation PlantBottle, made from 100% renewables. Gevo will work with Coke to deliver an integrated system to produce renewable para-xylene, a process that will progress over time from R&D to full commercialization (no specific timeline disclosed yet). Coke becomes the latest blue chip partner to work with Gevo, following in the footsteps of such companies as Toray Industries and Lanxess. The perpetual rivalry between the two giants of the soft drink industry Coca-Cola and PepsiCo has long had a green dimension. In , the two companies competed to be the first to deploy bottles made from recycled materials, and Coke became the first to market. This time around, the competition is for leadership in using bottles made from renewables. Coke is again in the lead, having introduced its first-generation PlantBottle which has 30% renewable content in This year, Coke expects to use 5 billion PlantBottles. Not to be overshadowed by its rival, in March, Pepsi introduced a bottle made 100% from renewables, with pilot production in Coke s second-generation PlantBottle also targets the 100% renewable mark hence the partnership with Gevo. There is no doubt that there is a public relations element to the Coke-Pepsi rivalry cultivating a green image is a well-established marketing strategy for consumer-oriented companies. But the opportunity goes well beyond public relations. SPI, the U.S. plastics industry s trade association, estimates annual shipments at ~$380 billion. For polyethylene terephthalate (PET) specifically, the global market is ~54 million metric tons (~$100 billion), with ~30% used for plastic bottles. Para-xylene is a key raw material used in PET production. Gevo has previously announced supplying Toray, a leading chemical company based in Japan, with lab-scale quantities of renewable para-xylene. Toray has successfully converted Gevo s para-xylene into PET films and fibers. Published by Raymond James & Associates December 15, 2011 Company Brief Rating Outperform 2 Current Price Current Price (12/15/2011 1:05 p.m.) $ Week Range $ $5.18 Suitability Venture Risk Market Data Shares Out. (mil.) 25.9 Market Cap. (mil.) $181 Avg. Daily Vol. (10 day) 79,980 Dividend/Yield $0.00/0.0% Book Value (09/11) $3.99 LT Debt (mil.)/% Cap. $19/16% Earnings & Valuation Metrics 2010A 2011E 2012E 2013E Non-GAAP EPS $(35.40) $(2.11) $(1.89) $(0.66) P/E Ratios (Non-GAAP) NM NM NM NM GAAP EPS $(37.44) $(2.11) $(1.89) $(0.66) Revenues (mil.) $16 $63 $46 $221 EBITDA (mil.) $(31) $(39) $(49) $(11) Cash Flow/Share $(20.84) $(1.60) $(1.51) $(0.19) P/CFPS Ratios NM NM NM NM Company Description Gevo, Inc., based in Englewood, Colorado, is a developer and early-stage producer of isobutanol, an advanced biofuel that can be blended into gasoline as an oxygenate and also has applications in chemicals. The company is focusing on corn as its primary feedstock and is expanding production capacity by retrofitting U.S. corn ethanol plants. Footnotes: Non-GAAP EPS excludes extraordinary items. Initial public offering within last 12 months; trailing 12-month share price figures represent range since that time. Please read domestic and foreign disclosure/risk information beginning on page 2 and Analyst Certification on page Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

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3 Raymond James Ltd. (Canada) definitions Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six months. Outperform (MO2) The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months. Market Perform (MP3) The stock is expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of funds for more highly rated securities. Underperform (MU4) The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold. Raymond James Latin American rating definitions Strong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months. Outperform (MO2) Expected to appreciate and produce a total return of between 15.0% and 25.0% over the next twelve months. Market Perform (MP3) Expected to perform in line with the underlying country index. Underperform (MU4) Expected to underperform the underlying country index. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James European Equities rating definitions Strong Buy (1) Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months. Outperform (2) Expected to appreciate and outperform the Stoxx 600 over the next 12 months. Market Perform (3) Expected to perform generally in line with the Stoxx 600 over the next 12 months. Underperform (4) Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months. In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a higher or lower rating. Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments. Rating Distributions Coverage Universe Rating Distribution Investment Banking Distribution RJA RJL RJ LatAm RJA RJL RJ LatAm Strong Buy and Outperform (Buy) 58% 71% 45% 14% 49% 23% Market Perform (Hold) 36% 28% 48% 5% 25% 3% Underperform (Sell) 6% 1% 7% 6% 0% 0% Suitability Categories (SR) For stocks rated by Raymond James & Associates only, the following Suitability Categories provide an assessment of potential risk factors for investors. Suitability ratings are not assigned to stocks rated Underperform (Sell). Projected 12-month price targets are assigned only to stocks rated Strong Buy or Outperform. Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal. Growth (G) Low to average risk equities with sound financials, more consistent earnings growth, possibly a small dividend, and the potential for long-term price appreciation. Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less predictable earnings and acceptable, but possibly more leveraged balance sheets. High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and risk of principal. Venture Risk (VR) Companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, and a substantial risk of principal. Raymond James Relationship Disclosures Raymond James expects to receive or intends to seek compensation for investment banking services from the subject companies in the next three months. Company Name Disclosure Gevo, Inc. Raymond James & Associates makes a NASDAQ market in shares of GEVO Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. 3

4 Stock Charts, Target Prices, and Valuation Methodologies Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition, and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry- or company-specific occurrences. Only stocks rated Strong Buy (SB1) or Outperform (MO2) have target prices and thus valuation methodologies. Target Prices: The information below indicates our target price and rating changes for GEVO stock over the past three years. Security Price $28.00 $26.00 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $ /16/08 1/15/09 2/13/09 Text 3/16/09 4/14/09 5/12/09 6/10/09 7/9/09 8/6/09 Gevo, Inc. (GEVO) 3 yr. Stock Performance 9/3/09 10/2/09 10/30/09 11/30/09 12/29/09 1/28/10 2/26/10 3/26/10 4/26/10 5/24/10 6/22/10 7/21/10 8/18/10 9/16/10 10/14/10 11/11/10 12/8/10 1/5/11 MO2 $ /2/11 MO2 $ /2/11 MO2 $ /29/11 4/26/11 5/21/11 MO2 $24.00 MO2 $ /16/11 7/12/11 8/5/11 9/1/11 9/28/11 10/25/11 MO2 $ /18/11 12/14/11 Analyst Recommendations & 12 Month Price Objective SB1: Strong Buy NA: Not Applicable MO2: Outperform NM: Not Meaningful MP3: Market Perform UR: Under Review MU4: Underperform S: Suspended Update Date Closing Price Target Price Rating 12/1/ /11/ /6/ /13/ /29/ /15/ Date: 12/14/11 Price Rating Change Target Price Change Coverage Suspended Target Price and Rating Change Split Adjustment Valuation Methodology: Our valuation methodology for Gevo is primarily based on discounted cash flow, using 2015 as the terminal year and 20% as the discount rate. Risk Factors General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on Raymond James research: (1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes toward the sector or this stock; (3) Unforeseen developments with respect to the management, financial condition or accounting policies or practices could alter the prospective valuation; or (4) External factors that affect the U.S. economy, interest rates, the U.S. dollar or major segments of the economy could alter investor confidence and investment prospects. International investments involve additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. Specific Investment Risks Related to the Industry or Issuer Conventional Energy Price Risk Alternative energy competes with conventional energy sources, the most important of which are crude oil, natural gas, and coal. Declines in the price of conventional energy can make alternative energy less competitive, and in some cases make it economically unviable. Consumers are less likely to view alternative energy as a practical option if conventional energy is relatively more attractive from an economic standpoint. Commerciality and Technology Risk Not all types of alternative energy are currently commercial, and some may never reach full commercial viability. There is no guarantee that future technological developments will be favorable to alternative energy, and in fact, some developments could render some types of alternative energy obsolete or unattractive. Public Policy Risk Many types of alternative energy currently benefit from favorable government policies, including tax incentives for producers and/or consumers, direct and indirect subsidies, and mandatory use requirements. These policies are subject to change and may become less favorable in the future. Regulatory Risk 2011 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. 4

5 Like all subsectors of energy, alternative energy is subject to many government regulations at various levels, including environmental and land use regulations. These rules can reduce the profitability of alternative energy and could potentially result in delay or loss of commerciality. Company-Specific Risks for Gevo, Inc. Lack of Near-Term Profitability We do not believe that Gevo will achieve sustained profitability until 2014 at the earliest. Similarly, the company's negative cash flow from operations represents another financial challenge and may necessitate outside financing in the future. Advanced Biofuels Commercialization Risk As is true of many early-stage industries, commercialization of advanced biofuels entails numerous risks. For example, in order to become cost-competitive with conventional biofuels (as well as petroleum fuels), Gevo must reduce the production cost of its products through improvements in yields and other manufacturing efficiencies. In addition, if Gevo eventually diversifies its feedstock mix beyond corn, it is important to underscore that the development of technology for converting sugar derived from non-food renewable biomass sources into a commercially viable biofuel is still in its early stages. Joint Venture Risk A core element of Gevo s growth strategy is to partner with ethanol plant owners in order to retrofit the plants to produce isobutanol. This strategy entails several risks, including potential changes in transaction terms and uncertain timing of transactions. Crude Oil and Corn Price Risk The biofuels produced by Gevo s plants will compete with conventionally refined petroleum fuels. Their price is linked to the price of crude oil. A significant decline in oil prices may render biofuels uneconomic. Gevo s plants also face the risk that their principal feedstock, corn, may significantly rise in price, therefore harming profitability. Competitive Market Environment Gevo operates within the competitive markets for fuels and chemicals. The company's ability to continue developing new product innovations and introducing these into rapidly evolving markets is essential for future success. Several of the company's competitors are larger and have greater financial resources. Government Policy Risk Many national and local policy measures benefit the biofuel industry in the U.S. and internationally. Any of these measures can be amended, suspended, or repealed, and such action could reduce demand for biofuels. Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available at rjcapitalmarkets.com/searchfordisclosures_main.asp. Copies of research or Raymond James summary policies relating to research analyst independence can be obtained by contacting any Raymond James & Associates or Raymond James Financial Services office (please see raymondjames.com for office locations) or by calling , toll free or sending a written request to the Equity Research Library, Raymond James & Associates, Inc., Tower 3, 6 th Floor, 880 Carillon Parkway, St. Petersburg, FL For clients in the United Kingdom: For clients of Raymond James & Associates (RJA) and Raymond James Financial International, Ltd. (RJFI): This report is for distribution only to persons who fall within Articles 19 or Article 49(2) of the Financial Services and Markets Act (Financial Promotion) Order 2000 as investment professionals and may not be distributed to, or relied upon, by any other person. For clients of Raymond James Investment Services, Ltd.: This report is intended only for clients in receipt of Raymond James Investment Services, Ltd. s Terms of Business or others to whom it may be lawfully submitted. For purposes of the Financial Services Authority requirements, this research report is classified as objective with respect to conflict of interest management. RJA, Raymond James Financial International, Ltd., and Raymond James Investment Services, Ltd. are authorized and regulated in the U.K. by the Financial Services Authority. For institutional clients in the European Economic Area (EEA) outside of the United Kingdom: This document (and any attachments or exhibits hereto) is intended only for EEA institutional clients or others to whom it may lawfully be submitted. For Canadian clients: Review of Material Operations: The Analyst and/or Associate is required to conduct due diligence on, and where deemed appropriate visit, the material operations of a subject company before initiating research coverage. The scope of the review may vary depending on the complexity of the subject company s business operations Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved. 5

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